Businesses broadly positive on likely impact

A survey at a business breakfast yesterday found that 73% of business leaders felt the budget would be either positive or have no negative impact on their business.

The survey at PricewaterhouseCooper’s Budget 2013 breakfast found that of the 500 attendees, 25% said the budget would have a positive impact on their companies. Half felt the right balance had been struck between cutting the country’s deficit while protecting fragile economic growth.

PwC’s head of tax, Feargal O’Rourke, said business leaders were relieved to hear that the corporation tax would continue to be protected.

“With continued commitment the 12.5% corporate tax rate, welcome new initiatives for the funds industry, a commitment to review the R&D credit regime, and measures introduced to help the SME sector, the survey highlights that many businesses feel positive about Budget 2013. However, with half saying Budget 2013 will have no impact on their business, there is some way to go to bring Ireland a step closer to prosperity.”

Meanwhile, employers’ group Ibec welcomed the Government’s 10-point tax plan, which, it said, was an important move to stimulate recruitment by freeing up capital.

“The overall focus of the business tax package has been to improve cash flow and reduce the administrative burden for businesses and this is to be welcomed,” the group said.

Ibec and the Irish Venture Capital Association welcomed the announcement of €175m in funding to boost indigenous jobs in the life sciences, ICT, and clean tech sectors.

Venture capital firms are raising funds for investment in SMEs, and by leveraging €175m, the IVCA said the investment would end up being valued at more than €1bn.